PROPERTY:
Kingswell Dr, Woodbridge, VA 22193
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $230,000. The borrower is putting up about $60K of their own cash plus fronting the construction costs. The property only needs about $10K in work to spruce up.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $200,000 1st Mortgage |
| Value of Subject Property: | $315,000 |
| Loan to Value: | 64% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 591 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Prince William County Virginia. The borrower will be contributing about $60K+ into this deal plus fronting construction money.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.